Silvergate is in talks with FDIC officials about ways to save the bank – #Silvergate #talks #FDIC #officials #ways #save #bank
March 7 (Reuters) – USA Federal officials are in talks with Silvergate Capital Corp ( SI.N ) management to avoid a shutdown, Bloomberg News said on Tuesday, citing people familiar with the matter. news gives
Shares of the cryptocurrency-focused bank rose nearly 5% in after-market trading.
Last week bank warned that it was delaying its annual report and said it assessed its viability as a going concern.
On Friday evening, the company said that the traditional bank Unlike its wires, Silvergate Exchange Network, which provides round-the-clock transfers between investors and cryptocurrencies, has made a “risk-based decision” to shut down. solve.
As the company looks for a way to stay in business, the report says USA regulators were sent to Silvergate headquarters.
One possible option is to line up crypto-industry investors to help boost Silvergate’s liquidity, the report said.
Bloomberg News added that Federal Deposit Insurance Corporation (FDIC) examiners were granted permission to visit Silvergate’s offices by its main federal regulator, the Federal Reserve, and exam issuers review the company’s books and records.
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FDIC experts visited the company’s La Jolla, Calif., offices last week, the people told Bloomberg News, adding that the company has not made a decision on how to deal with the deepening financial turmoil.
The FDIC and Silvergate were not immediately available for comment.
Silvergate, 1 for the fourth quarter following the collapse of Sam Bankman-Fried’s cryptocurrency exchange FTX in November billion dollars He was trying to reduce investors’ concerns about his future, as he reported that he had suffered losses, and his investors finally withdrew from the bank on 8 billion forced to withdraw dollar deposits. three months of the year.
Reporting by Ananya Mariam Rajesh in Bengaluru; Edited by Maju Samuel
Our standards: Thomson Reuters Trust Principles.
2023-03-08 12:59:22
Source – reuters
Translation“24 HOURS”